Committed to improving the total living environment of the communities we serve Comprehensive Energy Plan & Energy Efficiency Overview September 2008

Operating in a Changing Environment The Challenge: Meet growing needs of community in rising price environment Increasing economic uncertainty Increasing environmental regulation Fewer viable options to supply demand Globalization of utility suppliers Greater expectations from customers

We must define a shared commitment to energy efficiency among the company, customers and communities we serve. Energy efficiency addresses this challenge by: –Establishing a “first” fuel resource –Allowing for a more effective use of scarce resources –Providing customers with more information and control over their energy usage –Increasing energy independence Energy efficiency can become a very important solution.

GPE’s Strategic Intent Our Strategic Intent is a comprehensive plan to make KCP&L an industry leader at supplying and delivering electricity and providing innovative energy solutions to all customers — homeowners, businesses, municipalities and other utilities — for years to come. 26

KCP&L’s Comprehensive Energy Plan

CEP Update Renewable Energy Built first investor-owned and operated wind farm in Kansas. 100-megawatt facility in Spearville, Kansas Project completed ahead of schedule and under budget.

CEP Update (continued) Energy Efficiency 14 residential and business programs Customers control energy usage and costs. All programs developed and filed. Anticipated total savings - 79,000 megawatt hours of electricity

Energy efficiency continues as an emergent issue. Energy efficiency (EE) is aligned with a powerful set of emerging societal needs and preferences. –Environmental concerns –Energy security/independence –Affordability and price stability –Increased reliability In 2007 and 2008, EE has become a key focus for the media – including special coverage in most major newspapers and magazines. New national and global initiatives have been launched. –Clinton Global Initiative –National Action Plan for EE –Several EEI and EPRI (industry-supported) initiatives

Energy efficiency continues as an emergent issue (continued). Political leadership has emerged at national and state levels. –Proposed federal legislation and RPS standards –New ambitious goals for renewables and efficiency proposed in several states –State commission hearings on efficiency and related infrastructure investment New alliances have been formed, particularly among environmentalists, utilities and industrials. Activism from key corporations (e.g. GE, Wal-Mart) making efficiency an explicit part of their corporate strategy and brand position. Emerging recognition that efficiency should be considered in parallel – and even superior to other forms of generation. Overall level of spending by all parties will continue to grow as regulatory and legislative frameworks are established.

Energy efficiency programs eServices Renewable energy programs Sustainability Programs Other Advocacy Initiatives Resource Development State & local leadership National involvement Customer research Integrated resource planning Regulatory/legislative advocacy KCP&L’s Areas of Energy Efficiency Focus

Heating & cooling make the biggest impact. Thermostats 78 degrees in summer; 68 degrees in winter Consider a programmable thermostat Cooling your home Adjust your blinds during the day Use ceiling and portable fans Maintain your A/C

Weatherproofing helps you save. Seal cracks & openings Caulk & weatherstrip Insulate Repair windows

Wise energy use at home Turn off lights. Compact Fluorescent Lighting (CFLs) Schedule activities in early morning or late evening. Set water heater at medium 120 degrees.

Program Portfolio ProgramTypeAffordabilityResSmall ComMedium C&ILarge C&I Affordability  Affordable New Homes Direct Impact  Low Income Weatherization Direct Impact Energy Efficiency - Residential  Home Energy Analyzer Education  Home Performance with Energy Star Direct Impact  Change a Light, Change the World Direct Impact  Cool Homes Direct Impact  Energy Star New Homes Direct Impact Energy Efficiency - C&I  Business Energy Analyzer Education  C&I Audits Education  C&I Custom Rebates-Retrofit Direct Impact  C&I Custom Rebates-New Const Direct Impact  Bldg Operator Certification Direct Impact  Research Research Demand Response (DR)  Energy Optimizer (A/C Cycling) DR  MPower DR Markets

Current Program Offerings Energy Efficiency Programs – Energy Reduction 12 proposed programs have been filed in MO & KS. –Pending approval of one programs in KS Approximately 100,000 program participants Demand Response Programs – Demand Reduction 27,000+ Residential Customers are taking advantage of KCP&L’s Optimizer program (24 MW). 325 Commercial Customers are enrolled in KCP&L’s Curtailment program (73 MW).

Current Program Offerings (continued) eServices Total Paperless Bills Per Month: 50,000+ –Annual Savings: Paper Saved: 17,000 Pounds Gallons of Gas Saved (Not delivering bills): 5,500 Gallons Pounds of Greenhouse Gases Avoided: 304,175 Pounds

Affordable New Homes Program description  Provide incentives to builders of qualified new homes for low-income customers for the installation of Energy Star  rated lighting fixtures, Energy Star  rated refrigerators, high-efficiency central cooling equipment, and increased R-factor insulation in the home’s attic, floor or crawlspace. Customer target  Available to builders of qualified new homes, within the KCP&L service territory, for persons having household earnings at or below 185% of the current Federal Poverty Level guidelines or 60% of the current State median income, whichever is greater.

Affordable New Homes (continued) Rebates for Energy Star products, insulation upgrades and high-efficiency equipment  Lighting fixtures  Refrigerator  Insulation upgrades R42 Attic, R25 Floor, or R19 Crawlspace  Energy-efficient central cooling equipment (14 SEER or greater)

Low Income Weatherization Program Description KCP&L partners with community assistance agencies to provide services under the Weatherization Assistance Program. The program is run by the U.S. Department of Energy and is the nation's core method for delivering energy efficiency services to low-income households. Professionally trained weatherization crews perform on-site home energy audits using state of the art equipment to identify outside drafts and inspect heating and cooling systems for efficiency.

Low Income Weatherization (continued) Participating CAP Agencies:  East Central Kansas Economic Opportunity Corporation (ECKAN)  Southeast Kansas Community Action Program (SEK-CAP, Inc.)  Johnson County Human Services & Aging

Home Energy Analyzer Program Description  A set of free, online tools designed to help customers better understand how to use energy in their home and find ways to save. Key Points  Find ways to save.  Get more personalized savings info by going through AccountLink and factoring in actual bills.  Sort energy saving measures by fastest payback and greatest savings.  Track energy-saving projects with an online checklist.  Get detailed information about energy-related topics.

Home Energy Analyzer (continued) Home Energy Analyzer Detail  The Home Energy analyzer is a suite of tools designed to help customers better understand how they use energy in their homes and find ways to save. There are tools focused on appliances and thermostats to get specific energy saving information.  The energy Information is based on the information customer provides and can be more specific if the customer accesses the Energy Analyzer through AccountLink, which factors in their actual bills.

Cool Homes Program Description  Cool Homes is a program designed to encourage customers with operational, but inefficient cooling systems to upgrade to an energy-efficient unit. Program Highlights  Free evaluation of customer’s existing system  Instant rebate of $650 or $850 toward replacement of a working cooling system  Older systems will be brought back to efficiency standards if not replaced (recommissioning).  Free CFLs

Cool Homes (continued) Program Details  Inspection performed by a Cool Homes HVAC professional.  Existing cooling system must be operational.  Customers equipment that cannot be re- commissioned to 8.0 EER may qualify for up to $850 incentive to replace their existing unit.  All customers who get inspections will get a free multi-pack of compact fluorescent lighting (CFLs).

Energy Optimizer An air conditioning cycling program that offers residential customers a free, professionally installed programmable thermostat. Energy Optimizer helps reduce KCP&L’s summer peak, helps defer the building of new peaking power plants and helps the environment. Eligibility: Any KCP&L customer with a good working central air conditioner

Energy Optimizer (continued) Customer benefits:  A FREE – professionally installed programmable thermostat, a $300 value  Customer has better control over energy use for heating and cooling.  Internet accessible and programmable  24/7 support  KCP&L never cycles A/C on a weekend or holiday.

Existing C&I Program Overview Commercial and Industrial Energy Efficiency Rebate Programs:  Provide a means to reduce operating costs and increase efficiency;  And help to lower the cost of identifying and purchasing energy-efficient equipment.  Examples: high efficiency lighting, air conditioning, heating systems, motors, refrigeration and energy managements systems Commercial/Industrial Energy Audit Customers who have an energy audit performed by a KCP&L certified auditor are eligible for a rebate to cover up to 50% of the cost of the audit.

Existing C&I Program Overview (continued) Commercial/Industrial Rebate Programs –Custom Rebate for Retrofits: Any customer who plans to replace equipment in an existing facility with high efficiency equipment can obtain a custom rebate for a retrofit project. –Prescriptive Rebates: Small business customers who are on KCP&L's Small General Service rate (SGS) can apply for rebates from a pre-qualified list of energy- efficiency measures. –Custom Rebate for New Construction: KCP&L can work with you to develop an energy efficiency plan designed for your new building or major renovation.

MPower A contracted load curtailment program for commercial and industrial customers that provides a capacity and energy payment to participating customers to curtail their usage during summer months when high electric demand occurs. Customers are eligible for participating in the program by providing a minimum load reduction of 25 kW during KCP&L’s high usage/high cost periods. Program was redesigned in 2007 and 2008 to increase customer participation.

New Program Opportunities Areas for new residential program development –More robust education and self-analysis tools (Home Energy Analyzer Plus and Residential Energy Use Monitor) –Residential appliance turn-in program targeted to remove under-utilized redundant appliances (e.g. second refrigerators in garages, etc.). –Provide customers with near real time energy usage to enable the customer to immediately change behavior.

New Program Opportunities (continued) Areas for new C&I program development –Provide detailed load profiles for customers. –Programs focus on target markets including; more efficient lighting, motors, refrigeration and process equipment improvements. –Expand current demand response programs. –Develop new price and demand response programs including: Shorter curtailment notification time-periods (e.g. 10 minutes); Pricing flexibility for usage options.

The future of energy, today.